India and Japan have agreed to promote low-carbon and renewable hydrogen/ammonia ecosystems in both countries and other nations, according to a joint declaration of intent between India's Ministry of New and Renewable Energy and Japan's Ministry of Economy, Trade and Industry published Aug. 29.

The announcement coincides with Indian Prime Minister Narendra Modi's visit to Japan to strengthen economic ties across various sectors, including energy transition-related industries.

"Through this Joint Declaration of Intent (JDI), participants believe that India and Japan will leverage their combined strength to promote hydrogen/ammonia eco-systems in India, Japan and third countries," a statement from METI said.

The nations were "guided by their common goal of low-carbon development, express their strong commitment to collaboration on development and deployment of clean -- including green -- hydrogen and ammonia technologies."

The JDI aims to promote research, investment and project execution related to hydrogen and ammonia, including their transportation and applications across specified sectors, the statement said.

It will also promote and support, as appropriate, the advancement of cooperation on hydrogen/ammonia technologies.

The ministers acknowledged the importance of strengthening cooperation in the energy sector based on the "Japan-India Clean Energy Partnership" agreed upon by the leaders in 2022, the statement from METI said.

India also signed its first agreement under Article 6 of the Paris Agreement with Japan, widening its scope in the international carbon market through a Memorandum of Cooperation aimed at establishing a Joint Crediting Mechanism for the sale and transfer of Internationally Transferred Mitigation Outcome credits, or Article 6.2 carbon credits.

Synergies

The JDI said synergies were possible for the development of clean fuels as the two nations had complementary strengths, with Japan in a leading position for technological advancement.

"Japan is a leading global player in technologies for hydrogen/ammonia production, delivery and utilization, and has announced ambitious goals for their usage in different sectors," it said.

Meanwhile, "India aims to utilize its vast renewable energy potential to produce low-cost clean hydrogen/ammonia at scale, to meet a cross-sectoral domestic demand for hydrogen/ammonia and become a global hub for export."

India could take into account Japan's hydrogen/ammonia requirements through various measures, including its National Green Hydrogen Mission, which targets the production of 5 million mt of renewable hydrogen by 2030 and to gain a 10% share of the global trade around the same time.

The signing of JCM has the potential to accelerate the growth of renewable hydrogen/ammonia projects development in India, Rambabu Paravastu, advisor and chief sustainability officer at renewables firm Greenko told Platts, part of S&P Global Commodity Insights.

"Earlier, if I wanted to invest and manufacture something, most of the time, I would be looking to export markets for selling the commodity," Paravastu said. "But now we could produce and consume the commodity in India and export the credit outside, so that is one of the opportunities this has created."

Revised Nationally Determined Contributions would be submitted, and this could compel countries to secure more carbon credits to meet their NDC obligations, a move that could accelerate the signing of JCMs, Paravastu said at this year's UN Climate Change Conference in Brazil.

With the Indo-Japanese JCM signed, the path is clear for India to sign JCMs with other nations, he added.

Platts assessed Oman hydrogen produced via alkaline electrolysis, including capital expenditures, at $4.96/kg on Aug. 28, unchanged month over month.

Platts assessed Japan's hydrogen produced via alkaline electrolysis, including capex, at $5.57/kg on Aug. 28, marginally higher on the month.

Task force, implementation

The nations intend to establish a Hydrogen/Ammonia Task Force under the Working Group on New and Renewable Energy of the India-Japan Energy Dialogue, the JDI said.

"Progress on the JDI will be reported annually to the ministers through the India-Japan Energy Dialogue," it said. "The Working Group on New and Renewable Energy is responsible for its delivery."

Indian renewable hydrogen developers are eyeing deals in Japan as the country rolls out its Yen 3 trillion ($20 billion) support plan for the import of clean hydrogen and its derivatives. Some prominent developers in the clean fuels sector have signed non-binding agreements with Japanese entities.

Energy Dialogue

The 11th meeting of the Japan-India Energy Dialogue, co-chaired by Muto Yoji, Minister of Economy, Trade and Industry of Japan and Manohar Lal, Minister of Power and Housing and Urban Affairs of India, was held on Aug. 25, a separate statement from METI said.

One of the potential areas of cooperation was setting up a production and supply chain between India and Japan of low-carbon or renewable hydrogen and its derivatives and sustainable aviation fuel, the statement said.

The co-firing of low-carbon and renewable hydrogen and ammonia in thermal and gas power projects was another potential area of cooperation that could be pursued, it added.

Areas of co-operation outlined in Joint Declaration of Intent between India and Japan are as follows:

• Deepen collaboration on research and innovation for developing globally competitive technologies; work on applications of hydrogen/ammonia in industrial processes, long-haul mobility, shipping, power generation and steel production

• Develop understanding of hydrogen/ammonia-related policies; lead the shaping of global market regulations, codes and standards and their harmonization

• Promote the possibility of new trade and investment, and cooperate in the relevant international fora; hold international seminars, trade events and ministerial meetings

• Work in coordination to assess the requirements for infrastructure, trade rules, and technical requirements for developing ports capabilities for import/export of hydrogen/ammonia and other derivatives like methanol

• Promote the establishment of a reliable hydrogen/ammonia supply chain and exchange dialogue to develop a cross-border trade corridor